Soft Bound Version for Advanced Accounting 13th Edition
13th Edition
ISBN: 9781260110579
Author: Hoyle
Publisher: McGraw Hill Education
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Question
Chapter 4, Problem 2DYS
1.
To determine
Find the amount which Starbucks estimate for the October 31, 2014, acquisition-date fair value of Starbucks Japan.
2.
To determine
Explain the way in which Starbucks allocate the acquisition-date fair value of Starbucks Japan among the assets acquired and liabilities assumed.
3.
To determine
Identify how Starbucks explain the three different valuation bases for the following items
- Amount paid to Sazaby for 39.5 percent share purchase
- The fair value of Starbucks’ pre-existing 39.5 equity interest
- The fair value of the 21 percent non-controlling interest
4.
To determine
Explain how Starbucks account for its 39.5 percent ownership interest in Starbucks Japan prior to the acquisition of its controlling interest.
5.
To determine
Explain how Starbucks account for the change in fair value of its original 39.5 percent ownership interest upon acquisition of its controlling interest on October 31, 2014.
6.
To determine
Explain how Starbucks account for the difference between the amount paid and the underlying carrying amount of Starbucks Japan upon acquisition of the 21 percent non-controlling interest.
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Since 1995, Starbucks Corporation had owned a 39.5 percent equity interest in Starbucks Coffee Japan Ltd. ("Starbucks Japan"). lts joint venture partner, Sazaby League of Japan also owned a 39.5 percent equity interest in Starbucks Japan. The remaining 21 percent equity interest was held by public share holders and option holders.
On October 31, 2014, Starbucks acquired all of Sazaby League's shares of Starbucks Coffee Japan, bringing Starbucks' total ownership to 79 percent. Starbucks paid Sazaby $508.7 million for the additional percent ownership. Later in 2014, Starbucks acquired the remaining 21 percent of Starbucks Coffee Japan. Access Starbucks' 2015 10-K annual report and answer the following:
Upon acquisition of its controlling interest on October 31, 2014, how did Starbucks account for the change in fair value of its original 39.5 percent ownership interest?
Since 1995, Starbucks Corporation had owned a 39.5 percent equity interest in Starbucks Coffee Japan Ltd. ("Starbucks Japan"). lts joint venture partner, Sazaby League of Japan also owned a 39.5 percent equity interest in Starbucks Japan. The remaining 21 percent equity interest was held by public share holders and option holders.
On October 31, 2014, Starbucks acquired all of Sazaby League's shares of Starbucks Coffee Japan, bringing Starbucks' total ownership to 79 percent. Starbucks paid Sazaby $508.7 million for the additional percent ownership. Later in 2014, Starbucks acquired the remaining 21 percent of Starbucks Coffee Japan. Access Starbucks' 2015 10-K annual report and answer the following:
How did Starbucks allocate the acquisition- date fair value of Starbucks Japan among the assets acquired and liabilities assumed?
Since 1995, Starbucks Corporation had owned a 39.5 percent equity interest in Starbucks Coffee Japan Ltd. ("Starbucks Japan"). lts joint venture partner, Sazaby League of Japan also owned a 39.5 percent equity interest in Starbucks Japan. The remaining 21 percent equity interest was held by public share holders and option holders.
On October 31, 2014, Starbucks acquired all of Sazaby League's shares of Starbucks Coffee Japan, bringing Starbucks' total ownership to 79 percent. Starbucks paid Sazaby $508.7 million for the additional percent ownership. Later in 2014, Starbucks acquired the remaining 21 percent of Starbucks Coffee Japan. Access Starbucks' 2015 10-K annual report and answer the following:
What amount did Starbucks estimate for the October 31, 2014, acquisition-date fair value of star bucks Japan? (Hint: include the acquisition-date estimated fair value of the remaining 21 percent noncontrolling interest in Starbucks Japan total fair value.)
Chapter 4 Solutions
Soft Bound Version for Advanced Accounting 13th Edition
Ch. 4 - Prob. 1QCh. 4 - Atwater Company acquires 80 percent of the...Ch. 4 - What is a control premium and how does it affect...Ch. 4 - Prob. 4QCh. 4 - How is the noncontrolling interest in a subsidiary...Ch. 4 - Prob. 6QCh. 4 - Prob. 7QCh. 4 - Prob. 8QCh. 4 - Prob. 9QCh. 4 - Prob. 10Q
Ch. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7PCh. 4 - Assuming that Pride, in its internal records,...Ch. 4 - Prob. 9PCh. 4 - Prob. 10PCh. 4 - Prob. 11PCh. 4 - Prob. 12PCh. 4 - Prob. 13PCh. 4 - Prob. 14PCh. 4 - Prob. 15PCh. 4 - Prob. 16PCh. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Current liabilities: a. 50,000 b. 46,000 c. 40,000...Ch. 4 - Prob. 20PCh. 4 - Stockholders equity: a. 80,000 b. 90,000 c. 95,000...Ch. 4 - Prob. 22PCh. 4 - Prob. 23PCh. 4 - Prob. 24PCh. 4 - Prob. 25PCh. 4 - Prob. 26PCh. 4 - Prob. 27PCh. 4 - Prob. 28PCh. 4 - Prob. 29PCh. 4 - Prob. 30PCh. 4 - Prob. 31PCh. 4 - Prob. 32PCh. 4 - Prob. 33PCh. 4 - Prob. 34PCh. 4 - Prob. 35PCh. 4 - Prob. 36PCh. 4 - Prob. 37PCh. 4 - Prob. 38PCh. 4 - Prob. 39PCh. 4 - Prob. 40PCh. 4 - Prob. 41PCh. 4 - Prob. 42PCh. 4 - Prob. 43PCh. 4 - Prob. 44PCh. 4 - Prob. 1DYSCh. 4 - Prob. 2DYSCh. 4 - Costco Wholesale Corporation owns and operates...
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